Some forecasters believe that foreign exchange markets for the major floating currencies are "efficient" and forward exchange rates are unbiased predictors of future spot exchange rates. Explain the rationale of this statement including the assumptions made, the meaning of "efficient" and "unbiased," and the empirical evidence.

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The Answer of Some forecasters believe that foreign exchange markets for the major floating currencies are "efficient" and forward exchange rates are unbiased predictors of future spot exchange rates. Explain the rationale of this statement including the assumptions made, the meaning of "efficient" and "unbiased," and the empirical evidence.

Some Forecasters Believe That Foreign Exchange Markets for the Major